The deal involves two natural gas pipeline systems in Texas and a 19.46 percent interest in the Oklahoma-based Explorer Pipeline Company.

Phillips 66 Partners, a master limited partnership formed by Phillips 66 expects the deal to close in March.

Phillips 66 will receive a total of $1.01 billion consisting of $880 million in cash and $1.7 million Phillips 66 Partners’ units in the acquisition that was approved by the board of Phillips 66 Partners.

Phillips 66 reported an earnings increase of 39 percent in the fourth quarter of 2014 compared to the year prior and an earnings increase of 28 percent over 2013.

Shares of the company have risen about 87 percent in the past 12 months and its parent, Phillip 66, shares have risen nearly 3 percent during the same period.